Government handouts for business

Article in Australian Institute of Company DIrectors 7 May 2015 

http://www.companydirectors.com.au/Director-Resource-Centre/Publications/eXPRESSO/15May07BO/Government-handouts-for-business#

Spare cash for new business ideas or research is often tough to find but federal, state and territory governments are handing out millions of dollars each year in grants and tax incentives to help enterprises of all sizes.

The aim is to provide government support for innovation, export, environmental initiatives and a host of other measures.

Many business are simply not aware of the wide range of grants available, says Ivan Kaye, CEO of business consultancy BSI. "Or, if they are, it’s just too hard. The red tape people have to go through is incredible."

But those who patiently work their way through the paperwork (or hire consultants to do it for them) can reap significant rewards.

Kaye gives an example from his own business, which used a tax break and a business grant to help defray the development costs and marketing of a new app it launched two years ago.

The app, called Referron, provides a way to refer potential clients to businesses and for the business to measure, track and reward the referrals.

To begin with, after spending $300,000 developing the app, BSI received $120,000 back after qualifying for the Research and Development Tax Incentive, says Kaye.

Promoted as a "targeted, generous and easy-to-access entitlement program", the tax incentive is open to all firms in all sectors that carry out eligible R&D. Companies may receive a refundable tax offset of up to 45 per cent under the scheme.

"A lot of businesses who do R&D may not be aware that they qualify or think it’s too hard to get," says Kaye. There’s a bit of work in checking that you actually qualify for the incentive, he says, and then it’s necessary to prove that the R&D was carried out.

Firms such as BSI specialise in helping companies to work out their entitlement to this and other grants and incentives, says Kaye. And often payment is in the form of a "success fee" of around 3 per cent of the value of the grant or incentive.

Help to sell overseas

With BSI’s app up and running, Kaye was keen to market the product overseas.

To help fund the costs of travel and appointing a permanent representative in the United States, Kaye turned to an Export Market Development Grant. This grant provides a 50 per cent refund certain marketing costs over $5,000.

"So assume I spent $25,000 on airfares and another $10,000 on accommodation over a period of a year – let’s say 30-40 days – and I could claim back $300 a day for the number of days I’m away. So that’s another $12,000 that goes onto my expenditure," says Kaye.

The cost of hiring a representative to promote the app is also claimable under the grant as is the cost of Google AdWords.

"What we’ve found is, whatever you spend on R&D, you probably spend at least three times marketing," says Kaye.

"So if you spend $305,000, they take off the first $5,000, then you divide it by two and the government will give you a grant of $150,000."

You can expect some hoops to jump through to claim. Your documentation of the expenses and payments needs to meet certain standards, says Kaye.

Kaye received received recommends companies investigate the grants and incentives available not necessarily just to chase a one-off bonus but as part of an overall strategy to help expand their business.

For more information about government grants and incentive programs, go to business.gov.au

In other words…

• Take advantage of the many grants and incentive programs available for businesses
• Millions of dollars are handed out every year to businesses of all sizes.
• Some businesses may hire consultants to help them identify the most appropriate grants and to negotiate the application and approval process.

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5 bad habits that prevent you to listen effectively and the 6 things you can do to improve your listening skills!

A great article By

Mary Goodman and Rich Russakoff - I can really benefit from this!!

Listening is a skill that will make you more successful.... It seems as if some people are just naturally good listeners... the truth is, it is not a gift, its an acquired skill!! (Thank the lord - as I need to do a lot more of it!!!!)

Its interesting that "Listen" and "silent" has the same letters!!

The better you listen, the more others appreciate you and, in turn, the more they listen to you. By listening better, you learn more and misinterpret others less. 

5 Bad habits that get in the way of effective listening. 

1. Multi-tasking - Do you ever look at your phone or check emails during a conversation? If you think you can multi-task while listening, then you don't know what you're missing. It's also painfully obvious to the other person when we are distracted.
2. Me, Me, Me - If your major concern is how others perceive you, or what you'll say next, then you can't focus on what is being said.  Listen with a view to understand - not with a view to respond!! 
3. Brain Speed - If your thoughts outpace the speaking style of the person you are talking with, do you let your mind wander? Do you  interrupt the other person because we believe we know what the person is trying to say but taking too long to say it.
4. What did you Say? - Hearing loss can adversely affect every conversation, from missing out on a pleasant exchange to serious safety issues. If you suspect you have a hearing problem, get tested. If you know you have a hearing problem, get hearing aids. If you own hearing aids, wear them.
5. Line Butting - You're bored with the subject so you interrupt and introduce a new topic. Or worse, you start talking about yourself.

Which ones are you guilty of? 

6 things that you can do that will dramatically improve your listening skills.

1. Paying attention - give the other person your undivided attention. In the words of Gandhi, "Wherever you are - Be there."
2. Listen with your voice -  Practice "Active Listening". Say "no kidding", "um hmm", "go on", or by paraphrasing, which, by definition, is the act of restating or rewording what others say.  Say, "So what your saying is..." Or simply repeat the last thought the other person said. There is no better skill for effective listening then paraphrasing. If you've heard correctly, the other person will generally respond with an enthusiastic yes or nod. If you've heard it wrong, they'll know they need to clarify. Paraphrasing gives them the opportunity to restate what they said so accurate and meaningful communications take place.
3. Listen with your body - Lean forward, put your hands on your chin, or listen with open arms. When your body conveys a listening posture, others become more comfortable and open. If appropriate, take notes. In a business meeting, it shows your interest and helps you stay focused. Nodding is also a key component of your listening posture. And smiling. Smiles are contagious and make others feel comfortable, and the more comfortable we are, the better we communicate. Establish and maintain eye contact. Not only is this reassuring to the other person, but it enables you to read their body language which can convey more than their words. As Yogi Berra said, "You can observe a lot by just watching."
4. Button up!! - Don't interrupt. You hate it. So do others. It's rude. Unless you're seeing a fire erupt behind the person speaking, let them finish. Encourage them to fill out their thoughts by saying, "tell me more." When we interrupt, the other person loses their focus and we lose the opportunity to fully understand what they're trying to convey. Make a conscious effort to see how often you interrupt others over the course of a day. Hopefully, it won't be a rude awakening.
5. Ask questions - In the words of Stephen Covey, "Seek first to understand, then be understood. This involves a very deep paradigm shift. We typically seek first to be understood. Most people do not listen with the intent to understand; they listen with the intent to reply. They are either speaking or preparing to speak."
6. Talk less - A good philosophy is that conversations should not just be about you, but about we. As the Greek sage, Epictetus, observed: "Most of us were born with two ears and one mouth." That's a pretty good ratio between listening and talking.

really - listen up and listen better!!

Is "helping you grow a "WHY"?

Hi
I have just watched this TED Video by Simon Sinek - "WHY", Inspirational Leadership... Why Organisations succeed!!

It is inspirational!





I need your help re defining who BSI is based on the above....

Is this a WHY?
At BSI - everything we do and believe in is to "help you grow" 
Our focus is on you!
At 10X - we help you grow through coaching training and connecting
At BSI - we help you grow by getting you money (grants and capital)
At BSI People - we help you grow by recruiting training and retaining your people
At BSI Learning - we help you grow by finding innovative solutions that get you results
At Ark Total Wealth and Liquidity Finance  - we help you grow your wealth through financial planning
At Step Up we help you grow your future leaders

I suppose the question I am asking is , "is "helping you grow" a why?"

Would love your feedback and suggestions.
best regards
Ivan

5 Ways to raise capital for your SME

Angel Investors

Angel investors are wealthy individuals who will give an entrepreneur financing in exchange for a share of equity in the company. Investment sizes range, but usually are less than $1 Million. Angels often times work in organized groups that screen deals and invest with each other, while many invest on their own. Angel investors are more serious than the type of investor you would find in a Friends and Family Round, but they are usually less serious than a VC Firm.
Pro: Angels normally have experience in the industry and can offer helpful guidance and introductions to their network.
Pro: Because angels are less rigid than VC Firms, flexible business agreements are common.

Con: You can be forced to give up some degree of control over your company. Due to the high-risk nature of angel investing, angels rarely make follow-on investments.

Friends and Family

As an entrepreneur, you can lobby friends, family, and associates for funding that is usually invested more because of your personal relationship rather than an accurate assessment of the business plan. The Friends and Family Round often acts as a seed investment to get the business to a point where it will be able to obtain larger funding from an Angels or VCs.

Pro: Funding is usually obtainable quickly due to your existing relationship.
Pro: Potential exists for the mutual vested interest in the business to bring you closer with loved ones.
Pro: The investment terms are usually more flexible and potential exists for numerous equity or pay back methods.

Con: Immense pressure to succeed can strain personal relationships.
Con: Friends and family frequently have an extremely limited ability to evaluate the potential of your business, though they tend to give advice because of their monetary stake in the company.
Con: Friends and family usually bring nothing more to the table as an investor besides the initial capital.

Venture Capital (VC) Funding

Many entrepreneurs think that VC Funding is the key to their success. Venture capitalists are investors who are willing to put forward a large sum of money in exchange for equity in the company, but who only get their money out once the business either is acquired by another company or goes public. VCs are professional investors that are all about the money. They normally look for investments that can provide a 6X return on their investment, so you better be prepared to go big!
Pro: VCs can invest large sums at once and they can provide expertise and other assistance that is helpful in growing and exiting your business.
Pro: Being VC funded brings instant credibility to your company.
Pro: VCs open up doors to a vast network of individuals including partners and future investors.

Con: The term “Vulture Capitalist” exists for a reason. VCs are about the money and will take necessary steps to see a return on their investment, including ousting you from your own company.
Con: VCs may steer the business in a direction that you don’t agree with. However, they are very experienced and may know something that you don’t.

Bank Financing

Bank loans are the most frequently sought after source of financing and can be pursued at your nearest lending institution. Bank financing can be tricky as there are many different types of financing options and interest rates to go along with them. It is imperative to educate yourself about the process and your options before beginning.
Pro: Banks offer a range of funding amounts and payback options to fit your needs.
Pro: If you qualify, the time to funding is usually fairly quick.
Pro: If you go the financing route, you do not have to give up equity in the company.

Con: Bank loans are very difficult to obtain and the criteria is constantly changing.
Con: The entrepreneur owes the borrowed money whether the company succeeds or not.
Con: The large amount of documentation required can be tedious and time consuming.
Con: The financing options can be confusing. If you lack the knowledge or experience, you may lock yourself into an unfavorable deal with poor payment terms.

To enable your business to get the best chance for financing... you need to have your vision, values, 30 second pitch and business plan together, with a good management team and an understanding how the investor will get a return on their investment.

Government Funding 

There are various programmes that will assist you in accessing funding and even match funding on a $ for $ basis without giving up equity.



If you need help with raising capital... look us up on www.bsi.com.au

10 mistakes investors make in Africa, and how to avoid them

Abel Myburgh, Africa Desk Coordinator for BDO

Thu, 12 Apr 2012 11:59


Every year, African governments and big companies issue lucrative international tenders for major projects. Abel Myburgh, Africa Desk Coordinator for auditing firm BDO, offers advice on what companies should consider before and after winning that coveted tender.


Lack of knowledge and planning

Many investors regard the African continent as a single business regime and ignore the fact that there are over 55 countries, which include the surrounding islands. Each nation has its own rules and regulations. Some regions have tried to introduce uniform regulations but on the ground, the applications are different. We have experienced instances where companies tender and win contracts in Africa, only to realise that conducting business is difficult than they expected. We recommend that you start planning early - before the tender documents are filed. There are issues that can influence pricing, deliverability of the terms of the contract, and extracting profits from the specific country.

Lack of knowledge of the business culture in the host country

It is not unusual to find total disrespect for local culture. To avoid this, an in-depth study of the business norms and culture of the specific country should be undertaken. A lot of problems and misunderstandings can be avoided if a new entrant understands the perceptions and actions of their partners in Africa. The language barrier also forms part of this problem - it is important to acknowledge that English is not always the only or the main business language.

Unrealistic expectations

This is one of the most common mistakes made by new investors, and it can have a major impact on operations. The World Bank’s ‘ Doing Business’ guide can be used as an indicator, but country-specific information on regulations and business environment must be obtained in order to be informed on the exact procedures to follow.

Type of business entity to set up

Many companies may be under the impression that they can just begin operating in a country. However, the reality is that in most countries it is mandatory to register an entity. Another important consideration is the duration of the operation as some countries apply Permanent Establishment (PE) regime, which can result to a company paying tax locally on its worldwide profits.

Minimum share capital

Companies need to take into account any statutory minimum share capital requirements, which can vary from US$500 to US$1 000 000.

Local participation

In many countries, it is mandatory to introduce local shareholders and directors to a newly established company. A company then has to source indigenous shareholders, and the risks are numerous here. Proper planning is crucial in order to find reputable local shareholders or to opt for a different entity, for instance, a company branch.

Foreign exchange regulations

BDO has found that a number of companies stumble over this specific hurdle in that they cannot repatriate all of their profits and investments during or after the project has come to an end.

Direct and indirect taxation

Taxation is one of the biggest cost factors that companies have to take into account when operating in Africa. Many African countries have some of the highest tax rates in the world and in some cases, very aggressive tax authorities. Therefore, companies must do their homework when it comes to indirect taxes particularly import duties.

Taxation of employees

This is often a major area of concern, which tendering companies must plan for. Foreign employees’ presence in a country beyond 183 days will most likely trigger residency tax issues.

Work permits

It is important for a company to understand the latest requirements and regulations concerning foreign workers. BDO has encountered occasions where foreign employees have unknowingly operated in a country illegally due to obtaining incorrect visas.
What foreign investors look for in potential partners in AfricaFor African companies looking for foreign equity partners or financing, there are six key points to remember: western investors value time, honesty, direct communication, competition, planning and action - and they look for entrepreneurs who can execute ideas.

According to US-based investment consulting firm, RENEW LLC, this checklist will provide African companies with invaluable advice on how to deal with foreign investors.

Online Spark Magazine

This is by far one of the best SME online publications I have read.... would be interested in your feedback!
http://sparkmag.co/nationau/issue13/index.html

BSI Xmas Party 08

BSI celebrated another succesful year at the 2008 BSI Xmas Party at the Rocks.

An opportunity for the BSI Team to meet the Arrk team.

BSIS 2007 XMAS Bash

Bronte - Bondi - Watsons Bay
Great Company, Good Food , Top Wine and all that jazz